LayerZero Labs Strives for Fair Airdrop Amidst Turbulent Launch


LayerZero Labs, the innovative force behind the blockchain interoperability protocol LayerZero, is setting ambitious goals with its inaugural airdrop. 

The company aims to establish a benchmark for fairness by curbing Sybil activity—where users manipulate multiple wallets to unfairly benefit from airdrop rewards. However, the launch has been anything but smooth, marked by chaotic events and challenges.

LayerZero CEO Weighs In

LayerZero Labs CEO Bryan Pellegrino described the situation vividly in a post on X (formerly Twitter), saying, “…Waking up to a warzone :D. We always knew this was going to be PvP [player versus player] but this is something else.” 

His words reflect the tumultuous nature of the airdrop’s latest stage, where users were tasked with identifying and reporting Sybil accounts for a bounty.

3,000 Bounty Reports

Within hours of this stage’s commencement, LayerZero received over 3,000 bounty reports and 30,000 appeals, highlighting the scale and intensity of the activity. 

The process faced further complications as reports were hosted on GitHub, leading some users to remove accusers’ accounts to erase the reports. This tactic added another layer of complexity to an already fraught situation.

Temporary Pause On The Reporting Process

In response to these issues, Pellegrino announced a temporary pause on the reporting process, stating it would last “the next day or two.” 

To address the rampant automated reporting systems, the LayerZero chief executive proposed a potential solution: a .02 ETH bond (approximately $60 at current prices) for submitting a report. This measure aims to ensure only serious and genuine reports are filed, thus maintaining fairness and efficiency.

LayerZero CEO Explains Main Things to Solve

“The main things to solve for are—best bounty hunters can still get reports in (bond is not prohibitively expensive) and ideally observably fair on who was the first eligible report in collisions,” Pellegrino explained. “For now—lots of reports and appeals to go through in the meantime.” Pellegrino did not immediately respond to a request for comment from The Block.

LayerZero’s efforts come in the wake of a significant milestone: their final snapshot identified six million unique wallets interacting with the protocol. Following a successful funding round in April 2023, the company reached a valuation of $3 billion. Notably, before the bounty hunter stage of the airdrop, up to 100,000 addresses had self-reported as Sybils, demonstrating the scale of the challenge LayerZero faces.

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